Chapter 6 The following transactions were completed by Montrose Company during May of the current year. Montrose Company uses a perpetual inventory system. May 3 Purchased merchandise on account from Floyd Co., $4,000, terms FOB shipping point, 2/10, 1/30, with prepaid freight of $120 added to the invoice. 5 Purchased merchandise on account from Kramer Co.. $8,500, terms FOB destination, 1/10, 1/30. 6 Sold merchandise on account to C.F. Howell Co., list price $4,000, trade discount 30%, terms 2/10, n/30. The cost of merchandise sold was $1,125. 8 Purchased office supplies for cash $150. 10 Returned merchandise purchased on May 5 from Kramer Co., $1,300. 13 Paid Floyd Co. on account for purchase of May 3, less discount 14 Purchased merchandise for cash, $10,500. 15 Paid Kramer Co. on account for purchase on May 5, less return of May 10 and discount. 16 Received cash on account from sale of May 6 to C.F.Howell Co., less discount 19 Sold merchandise on MasterCard credit cards, $2,450. The cost of merchandise sold was $980. 22 Sold merchandise on account Comer Co., $3,480, terms 2/10, n/30. The cost of merchandise sold was $1,400. 24 Sold merchandise for cash, $4,350. The cost of merchandise sold was $1,750. 25 Received merchandise returned by Comer Co. from sale on May 22, $1,480. The cost of the returned merchandise was $600. 31. Paid a service processing fee of $140 for MasterCard sales. Instructions: 1. Journalize the preceding transactions. 2. Journalize the adjusting entry for merchandise inventory shrinkage, $3,750